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Historic, archived document

Do not assume content reflects current scientific knowledge, policies, or practices.

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General Report 69

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November 1959.

lTb r a r yI

CURRENT SERIAL RECORD '

^ DEC 29 1959 ^

U. S. DEPARTMENT OF AGRiCUiTUIIf

INTEGRATED DAIRY OPERATIONS

THROUGH FARMER COOPERATIVES

/XT

BY ANNE L GESSNER

T~X>

Vi

FARMER COOPERATIVE SERVICE U. S. DEPARTMENT OF AGRICULTURE

FARMER COOPERATIVE SERVICE

U. S. DEPARTMENT OF AGRICULTURE

WASHINGTON 25, D. C.

Joseph G. Knapp, Administrator

The Farmer Cooperative Service conducts research studies and service activities of assistance to farmers in connection with cooperatives engaged in marketing farm products, purchasing farm supplies, and supplying busi- ness services. The work of the Service relates to problems of management, organization, policies, merchandising, product quality, costs, efficiency, financing, and membership.

The Service publishes the results of such studies, confers and advises with officials of farmer cooperatives; and works with educational agencies, co- operatives, and others in the dissemination of information relating to co- operative principles and practices.

Acknowledgment is made to the 981 dairy cooperatives that furnished the basic information for this study; to Stanley F. Krause, Chief, Dairy Branch, Marketing Division, for assistance in planning and analysis; and to Kelsey B. Gardner, Director, Management Services Division, for general supervision and planning. For their substantial contribu- tions to the preparation of this report, acknowledgment is also due William J. Monroe, James B. Roof, and George C. Tucker, Dairy Branch; and Elizabeth J. Simmons and Florence L. Parker, History and Statistics Branch.

Contents

Page

Highlights ...,..,..,........», ......»o............ ...................... ««.«.... iii

Purpose and method of study ,,.,..,.,.. , ..,..».,.,»<..».,,».»... 2

Number and State location of dairy cooperatives ..,......,,..>,....., 3

Quantities of fluid products received and bargained for ......,,,.,.«...»... 3

Whole milk ,...,,..,,....e..., ,.,....,., 6

Butterfat in cream .,,,,,. ,„,.,...,,,...,....... 7

Milk and cream retailed and used by farmers ,,...,„,..,...,,..,...,,..,, 8

Quantities of dairy products manufactured „..,.e.....,.c.,.o».,.e,,.,.,...e,e. 8

Creamery butter .o... ..,..,,....«. .....»,....».3»e..e.«..e,».».»8e..«.»«o..,.,..., 8

American cheddar cheese ..<,..e.,.o..,»...»»....»o.......o. »»».«,.»».». .<...,.,, 10

Cottage cheese (curd or creamed)....,.,,,. .,»,oo. .,,,..».».«.,. o»o».,. ,....,. II

Other cheese,,.,.,....,.....,.,, »....,,,...... «......o,...,.»»e.,. »......,...,,.,,... 12

Condensed skim milk .,,,,,.,.,,,„..,,,..,.,...,.,....,.,,,,.,...,.,...,..,...,., 13

Nonfat dry nnilk ,,„,,....,.,,,,.,,....,,.....,,.....,., ..,,.,.... ..,,.. 13

Dry buttermilk .,,,,,.,. ....o<,..,c.,..,,,.............oe,»»..o, ...,., ..,.,, 15

Dry whole milk .,,,.,.,.,,....,„,,.,,,,,,,.,,...,......,..,.,...,,,..*,....,...,,,. 17

Ice cream. <,,„,.„„,,.,......»,.,,..,...,.,,.,,.<..,,,,...,,,.....,.,,..., a,..,,.,,..,,, 17

Miscellaneous manufactured dairy products ,,....o, ..,,..<,.»...,. .....»», 17

Quantities of fluid milk and manufactured dairy products

distributed at wholesale and retail ,.,,.,,,,,.,.«...«.,.,,.,.,,,,.,.,.,...«.,.. 19

Fluid milk products .,.,,,.,...,.,,,..,,,.,.,.....,,.,..,,,, ,.o,,,..«,,,.. ......... 19

Whole milk...,...,,,,,.........,......,,,,...,.,,,.........,,....,......,..,.,,. 19

Creatn,.,,,,,,.,..,,,,.,.,,.,, „....,,.,,.,,,,...,..,..,,.,,, o,,,.,.,,....,., 19

Fluid skim milk ,.,.,.,..,,..,...,.,,,,.......,<,...,,.,..,,..,..„ 21

Buttermilk ,,.,,,.„..„„,,,,.,„,,,,,,,.,.,..,..,..„,...,,,,.,,,,..,.„..,......,,., 21

Chocolate milk ,,,,,..,..„,,...,..,.,.,,,,,„,..,, .,.,,,...,..,,.0,0.,...., 23

Manufactured products .,.,,.......,,,...„,,,,,,,.,,,,.,..,.,,..,,,.,,.,.,,..„,,, 23

Creamery butter ,.0.,.,,,..,,,. « ..,., ,,,, 23

American cheddar cheese , ,..,.,....,..,........ 26

Cottage cheese (curd or creamed) ..,...,,,.,,,.,„.,,, .,...,.,.,0....... 26

Other cheese ,,...,,.,..,,,o...,o,,..,. ..,....,.,.....,.,,..,,.,..., ........... 27

Ice cream .,,,,.,,.......,,.., .,.,,,,,,.,,,,..,........,..,,,,„..,..,„,., 27

Nonfat dry milk,..,,.. ,,...,. ....o. 29

Condensed skim milk...,. ,,..,,.,..,,,...,,.,,.,..,,..,,. ., 30

Dry buttermilk ,...,,.,,,,.,,...,,,,.,.,...,,,.,,,......,,,.„.,...,....„,«..,,. 30

Dry whole milk., ...,,,,.,,,,,..,,,,,,..,.,,,.,,,..,......,...,...,, 30

Types and combinations of dairy products handled at each level

of operation ,,.,,,,...,,,.,,,,.,,,., ,..,,...0....,,.,.....,,.......,,,, 31

Receiving and bargaining...,, .,,,,,0.,,, ,,.....,.,.....,.,...,,.,.,,, 31

Manufacturing .,,,.,,.....,..,,.,,,„,,,...,...,,,,..,,.....,,,,,.,.,.„,,... .. 31

Distributing at wholesale .....,...,,,.,,,,..,,...,,......,.,,.,.,.,,..„,,... 33

Distributing at retail ..,,.... ,..,,.,..,,..,,,..,,.,. ,,..,. 33

Cooperatives manufacturing dairy products by production-size

groups.....,,.,,..,..,..,,,,.,. „,,.,..,,,„.,.,,...<,,,..,,....,,.,,.,,,,..,..,.,. .,,,,.,. 34

T r an s po rtation, ,,,,., ,,...,.,,..,...,.,...,,,..,,.,.,.,,..,.,,...,.,..,,.,.,„.. 37

Highi

[tits

Because of the increasing interest of farmer cooperatives in further economic integration, Farnner Co- operative Service made this study to determine the types and extent of integrated dairy operations provided for farmers by their cooperatives.

The progress of cooperatives in integrating their activities is indi- cated by the data summarized in this report on the quantities of products handled and functions performed at the four major levels of operation. These are: (i) Receiving and bar- gaining, (2) manufacturing, (3) dis- tributing at wholesale, and (4) dis- tributing at retail.

Receiving and Bargaining

Dairy cooperatives performed one or more functions in the distribution of almost three -fifths of the 98 billion pounds of whole milk that farmers marketed through plants and dealers in the United States in 1957. This proportion of the whole milk was either actually delivered at their plants or covered in their bargain- ing transactions. Their physical re- ceipts and bargaining transactions represented a total volume of more than 58 billion pounds of whole milk in 1957.

Cooperative receipts of over 189 million pounds of butterfat in cream represented 43 percent of the total

handled by plants and dealers in the United States in 1957. Included in this cream is a very small amount marketed by bargaining transactions.

Over four -fifths of all dairy co- operatives received or bargained for only fluid products such as whole milk, cream, and skim milk. The remaining one -fifth of these asso- ciations received some manufactured products purchased from other co- operatives or other firms, in addi- tion to their receipts of fluid products.

Manufacturing

A little over three -fourths of all dairy cooperatives manufactured at least one or more dairy products in 1957.

The major dairy products coop- eratives manufactured in 1957 in- cluded creamery butter, American Cheddar cheese, cottage cheese, other cheese, condensed skim milk, nonfat dry milk, dry buttermilk, dry whole milk, and ice cream.

Cooperative production of cream- ery butter in 1957 amounted to 825

Xll

million pounds and represented al- most three -fifths of the total produc- tion of slightly more than 1.4 billion pounds in the United States, Almost one -half of all of the cooperatives that manufactured dairy products pro - duced butter only in 1957.

Cooperatives produced 215 million pounds of American cheddar cheese in 1957, representing a little more than 23 percent of the total of 924 million pounds produced in the United States.

Cooperatives were less innportant in the production of cottage cheese (curd or creamed). Their total pro- duction in 1957 was a little over 91 million pounds, representing slightly more than 7 percent of the United States total production of 1.2 billion pounds.

The cooperative production of other types of cheese included primarily Swiss, and small amounts of brick, munster, and linnburger. Their total production of these other types of cheese amounted to more than 36 million pounds in 1957 and repre- sented almost 8 percent of the United States total of more than 483 million pounds.

Cooperatives manufactured more than 102 million pounds of condensed skim milk (sweetened and unsweet- ened), representing alnnost 14 per- cent of the United States total of more than 752 million pounds.

Cooperatives played a major role in the production of nonfat dry milk, including nonfat dry milk for animal feed. Their total production in 1957 of 1.25 billion pounds amounted to almost three -fourths of the United States total production of 1.69 billion pounds.

In the production of dry butter- milk, cooperatives were relatively important in 1957. They produced 49 million pounds, representing al- most 70 percent of the total produc- tion in the United States of 70.3 million pounds.

Other dairy products manufactured by cooperatives in 1957 included 15 million pounds of dry whole milk, representing about 14 percent of the total United States production, and 26 million gallons of ice cream, representing only 4 percent of the United States total.

Wholesaling

The major dairy products distrib- uted by cooperatives at wholesale included whole milk, cream, skim nnilk, butternnilk, chocolate milk, butter, American cheddar cheese, cottage cheese, other cheese, ice cream, nonfat dry nnilk, condensed skim milk, dry buttermilk and dry whole milk. The data show clearly that the distribution activities of dairy cooperatives are principally at the wholesale level; their entry into re- tailing has been limited in extent.

In 1957, cooperatives distributed at wholesale over 3 8 billion pounds of whole milk, representing all but 2.5 percent of their distribution of this fluid product. This wholesale distribution included whole milk that was not physically handled by co- operatives in their bargaining trans- actions. The major part of this whole- sale distribution was in bulk form, with only a little over 2 billion pounds distributed in containers.

The total amount of cream dis- tributed by cooperatives at wholesale

IV

in 1957 was estimated at more than 138 million pounds on an average butterfat basis. This represented a little more than 98 percent of their total distribution of butterfat in cream. A substantial amount of this cream sold at wholesale was in con- tainers. On a butterfat basisj the cream in containers amounted to more than 28 nnillion pounds and represented one -fifth of the total butterfat in cream distributed at wholesale.

Almost all of the fluid skim milk cooperatives distributed in 1957 was sold at wholesale. Their total whole- sale volume was 3.7 billion pounds, with less than 83 million pounds sold in containers.

Cooperatives distributed at whole- sale almost 82 million quart equiva- lents of buttermilk. This represented 90 percent of their total distribution of buttermilk.

Their distribution at wholesale of chocolate milk amounted to more than 38 nnillion quart equivalents, representing 84 percent of their total distribution of this product.

Cooperatives marketed at whole- sale over 757 million pounds of creamery butter in 1957, represent- ing about 93 percent of their total sales.

The wholesale volume, of American Cheddar cheese represented more than 98 percent of total sales by co- operatives in 1957 and amounted to a little over 212 million pounds.

Cooperative sales of cottage cheese (curd or creamed) at wholesale amounted to almost 85 million pounds and represented 88 percent of their total distribution in 1957.

All but 3 percent of their total sales of 38 million pounds of other cheese and all but 1 percent of their total sales of ice cream amounting to 31 million gallons were made at wholesale in 1957.

Sales of 1,2 billion pounds of non- fat dry milk, 85 million pounds of condensed skinn milk, 42,3 million pounds of dry buttermilk, and 13.7 million pounds of dry whole milk were reported at wholesale.

Retailing

About 52 percent of all dairy co- operatives made some sales at re- tail in 1957. But the proportion of fluid and manufactured dairy products sold at retail was relatively small.

The quantities of the major fluid products sold at retail and their per- centages of total cooperative sales of each product were: Whole milk, 960 million pounds, representing 2.5 percent; butterfat in cream, 2.5 mil- lion pounds, representing 1.8 percent; fluid skim milk, 30 million pounds, less than 1 percent; buttermilk, 9 million quart equivalents, 10 percent; chocolate milk, 7 million quart equiv- alents, 16 percent.

In the distribution of manufactured dairy products by cooperatives, the major products, quantities, and per- centages of total cooperative sales that were nnade at retail in 1957 were: Creamery butter, almost 59 million pounds, representing over 7 percent; American cheddar cheese, almost 4 million pounds, 1.7 percent; cottage cheese (curd or creamed), over 11 million pounds, 12 percent; other cheese, over 1 million pounds, 3 percent; and ice cream, 309,000 gallons, 1 percent.

Number of Cooperatives Included in Study

Data for 1957 on these four levels of operation were obtained from 981 dairy cooperatives in a sample of 1,335 associations that received a questionnaire requesting detailed in- formation on the quantities and kinds of dairy products handled at each level. The 981 dairy associations that furnished this detailed information represented 74 percent of the sample and 63 percent of the total number of 1,557 dairy cooperatives for which data are presented in this report. Estimates for the remaining 37 per- cent were compiled from operating statements and other data furnished in the annual survey of farmer co- operatives.

These 1,557 associations operated during the full 12 months of the 1957 fiscal year. Information was not re- quested from associations that dis- continued in the 1957 fiscal year and had already been removed from the active list of Farmer Cooperative

Service at the time questionnaires were mailed. Some of the discontinued associations had been in process of liquidation for several months, while others operated for a short period in fiscal 1957 and then either merged or consolidated with other associa- tions or liquidated. Their volume was small and would not greatly affect the accuracy of the volume data re- ported here.

The figure of 1,744 dairy coopera- tives reported in the 1956-57 survey of farmer cooperatives included ap- proximately 185 discontinued asso- ciations that either reported dollar volume for a short period of opera- tion in 1956-57 or for which estimates were made because information on liquidation had not yet been received. It also included a few newly organized associations that reported member- ship. The 1956-57 survey covered fiscal years ended in the period July 1, 19 56, through June 30, 1957, whereas the study reported here covers fiscal years ended in the 1957 calendar year.

VI

Integrated Dairy Operations Through Farmer Cooperatives

by Anne L Gessner History and Statistics Bronch Management Services Division

In recent years there has been an accelerated interest in the extent of integration in the business activities of dairy cooperatives.

The changes taking place in agri- culture and in cooperative operations have stimulated this interest. Among these changes have been the increas- ing number of mergers and consoli- dations among dairy cooperatives, the trend toward increasingly higher production by fewer farmersj and the need for nnore efficient methods both on the farm and in the dairy plant.

There is increasing awareness also that greater attention must be given

to the possibilities of integrating and diversifying operations of farmer co- operatives so that the producer may be in a more advantageous position in marketing his farm products.

Since dairy products have conti- nued for many years to represent the most important group of farm products marketed by cooperatives on the basis of dollar value, Farmer Cooperative Service selected dairy cooperatives as the first marketing group to be studied in developing in- formation on the extent of integration among farmer cooperatives.

Dairy cooperative management, in making policy decisions on integration and diversification, requires more complete and precise information on the relative importance of the major cooperative services and functions performed in receiving, manufactur- ing, and distributing dairy products.

- 1

Purpose and Method of Study

The study covered dairy coopera- tives only and supplied information on the following: (1) Quantities and types of products received or bar- gained for and number of coopera- tives involved in these operations; (2) quantities and types of products manufactured by cooperatives and number of associations manufactur- ing these products; (3) quantities and types of products marketed at whole- sale and retail and number of asso- ciations distributing these products; (4) number of cooperatives by pro- duction-size groups that processed each of the major types of manufac- tured dairy products; and (5) infor- mation on the proportion of daiiry products cooperatives transported at various levels of operation in trucks they owned or leased.

While annual statistics are avail- able on the number of farmer co- operatives handling dairy products and on the total sales value of these products, such statistics are limited in a number of respects. They pro- vide no information on how far these cooperatives have integrated their operations through manufacturings wholesaling, and retailing dairy prod- ucts. Nor do they provide an accurate measure of the physical volumes of the various dairy products handled by cooperatives at different levels of operation.

If detailed information sinn.ilar to that presented in this report is com- piled periodically, it will provide the necessary benchmarks for measur- ing progress, growth, and relative importance of cooperatives in the dairy field.

Information for the nationwide study reported here came from a mail questionnaire returned by 981 co- operatives. These 981 respondent associations represented almost 74 percent of the 1,335 cooperatives to whom the questionnaire was mailed and 63 percent of the 1,557 coopera- tives covered in the final estimates. Estimates for the remaining 37 per- cent of these associations were de- veloped from operating statements or other data supplied by these as- sociations in our annual survey of farnner cooperatives.

Information on each of the major dairy products received and bar- gained for by cooperatives is com- pared in this report with similar information compiled for all dairy firms in the United States in 195 7^. Data on the major products manu- factured by cooperatives in 1957 are compared in this report with figures compiled on manufactured dairy prod- ucts for all dairy manufacturing plants in the United States^.

Comparisons could not be made on the volume of dairy products dis- tributed at wholesale and retail by cooperatives with total distribution of dairy products in the United States as such data were not available.

This report discusses the prin- cipal integrated functions of dairy cooperatives in the order of re-

^ Walters, H. M., and Le Grande, Charles VV. Milk, Farm Production, Disposition, and Income, 1957-58. Agr. Mar. Ser., U. S. Dept. of Agr.. Da 1-2 (59).

^ Bormuth, W. D., and Wagner, R. J. Production of Manufactured Dairy Products, 1957, Agr. Mar. Ser., U. S. Dept, of Agr.. Da 2-1 (58).

2 -

ceiving, manufacturing, and distrib- uting dairy products as they are regarded as the logical order of

steps in following the marketing of dairy products from the farm to

the consumer.

Nimilier and Stale Location of Dairy Cooperatives

Data for 1957 were obtained from

981 dairy cooperatives in a sample of 1,335 associations that received a questionnaire requesting detailed information on the quantities and kinds of dairy products handled at each level of operation. The 981 associations that furnished this de- tailed information represented 74 percent of the sample and 63 per- cent of the total number of I5557 dairy cooperatives for 'which data are presented in this report^. Esti- mates for the rennaining 37 percent were compiled from operating state- ments and other data furnished in the annual survey of farmer co- operatives.

The State location of all dairy cooperatives included in the study is shown in the last column of table

1, Also shown in table 1 is the num- ber of cooperatives in each State that manufactured each of the major dairy productsj, as well as the number of associations in each State that re- ported no manufacturing of dairy products in 1957.

This is the only table in the re- port that presents information on a State basis. Tables that follow giving quantity data on receiving and bar- gaining, manufacturing, and distrib- uting dairy products show geographic areas only. Table 1 is presented at this point in order to provide the reader with a better understanding of the overall picture before pro- gressing to quantitative analyses of the fluid and manufactured dairy prod - ucts that cooperatives handled at each of the four major levels of operation.

Quantities of Fluid Products

•gainer

eceiveo am

In the following discussion, the quantities of whole milk and butterfat in cream received and bargained for by cooperatives in 1957 are analyzed

^ These 1,557 associations operated during the full 12 months of the 1957 fiscal year. Information was not requested from associations that discontinued in the 1957 fiscal year and had already been removed from the active list of Farmer Cooperative Service at the time questionnaires were mailed. Some of the discon- tinued associations had been in process of liquidation for several months, while others operated for a short period in fiscal 1957 and then either merged or con- solidated with other associations or liquidated. Their volume was small and would not greatly affect the accuracy of the volume data reported here. The figure

by geographic areas and compared with similar data compiled for all dairy firms that were operating in the United States.

of 1,744 dairy cooperatives reported in the 1956-57 survey of farmer cooperatives included approximately 185 discontinued associations that either reported dollar volume for a short period of operation in 1956- 57 or for which estimates were made because infor- mation on liquidation had not yet been received. It also included a few newly organized associations that reported membership. The 1956-57 survey covered fiscal years ended in the period July 1, 1956, through June 30, 1957. The study reported here, on the other hand, covers fiscal years ended in the 1957 calendar year.

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5 -

Whole Milk

Cooperatives either received at their plants or bargained for almost three -fifths of the milk farnners marketed through plants and dealers in the United States in 1957 as shown in table 2 and figure 1,

In the West North Central area cooperatives accounted for more than 77 percent of all milk delivered to plants and dealers in that area in 1957. This area includes Minnesota and Iowa where dairy cooperatives have long been important. Coopera- tives in this area handled over 12.3 billion pounds of nnilk through both physical receipts and bargaining transactions.

In the East North Central division, the total volume of milk cooperatives handled through physical receipts and bargaining transactions amounted to

19.5 billion pounds, representing a little more than 58 percent of the total

Figure 1

Fluid Milk Marketed Through Cooperatives and Other Businesses. 1957

_i:v

41%

Others

Cooperatives

1/

Total U. S. - 98.4 Billion Pounds

l/lncludes all milk physically handled, processed, manufactured, and sold, as well as milk marketed through bargaining transactions.

TABLE 2. --Volume of whole milk received and bargained for by cooperatives compared with total delivered to

plants and dealers in the United States, 1957 -*-

Geographic division

Handled by cooperatives^

Whole milk

Total delivered to

plants and

dealers in the

United States

Cooperative percent of total

North Atlantic^ East North Central West North Central South Atlantic South Central Mountain Pacific

United States

Million -bounds	Million pounds	Percent
13, 239	19, 783	66.9
19,493	33, 485	58.2
12,307	15, 945	77.2
3,299	6,584	50.1
3,738	9,847	38.0
1,995	3,473	57.4
3,967	9,261	42.8

58, 038

98,378

59.0

Cooperative data were tabulated by association headquarters and not by plant location.

Handled either by physical receipt or by bargaining transactions. Amounts shown include both amounts marketed directly for farmers and small amounts purchased from other concerns. They do not include inter- association transactions except possibly small amounts reported in purchases from other concerns.

-^Includes the New England and Middle Atlantic geographic areas as defined by the Bureau of the Census. Data on total deliveries of whole milk to plants and dealers were not published separately for these two areas.

- 6 -

TABLE 3. --Volume of cream received by cooperatives compared with total delivered to plants and dealers in the

United States, 1957^

Geographic division

Cream

Received

by ,

cooperatives'"

Total delivered to plants and dealers in the United States

Cooperative

percent

of

total

North Atlantic^ East North Central West North Central South Atlantic South Central Mountain Pacific

United States

Butterfat	Butterfat
,000 pounds	1 ,000 pounds	Percent
58	xf 5, 570	1.0
13, 516	46, 450	29.1
162, 775	330, 000	49.3
2,408	8,430	28.6
5,701	27, 510	20.7
1,601	17, 290	9.3
3,113	7,970	39.1

189, 172

443,220

42.7

■'" Cooperative data were tabulated by association headquarters and not by plant location.

2 Receipts from farmers only. Includes a very small amount of cream marketed by bargaining transactions.

3 Includes the New England and Middle Atlantic geographic areas as defined by the Bureau of the Census. Data on total deliveries of cream to plants and dealers were not published separately for these two areas.

delivered to plants and dealers in that area. This area includes Wisconsin

Figure 2

Cream Marketed Through Cooperatives and Other Businesses, 1957

IS

57%

Others

EE^

Cooperatives-/

Total U. S. - 443.2 Million Pounds Butterfat

1/ Includes a very small amount mar- keted by bargaining transactions.

where cooperatives have played an important role in the dairy industry for many years.

Table Z shows that cooperatives in the South Central area accounted for the smallest percentage in any geo- graphic area. Their total of over 3.7 billion pounds represented 38 percent of total deliveries of more than 9.8 billion pounds to plants and dealers in that area.

Butterfat in Cream

Cooperative plants received over 189 million pounds of butterfat in cream4 in 1957 (table 3). This amounted to about 43 percent of the total receipts of 443, Z million pounds by all plants and dealers throughout the United States (figure Z)^

^ Includes a very small amount of cream marketed by bargaining transactions.

- 7

Butter manufacture has changed rapidly from the use of farm-sep- arated cream to factory-separated cream. Less than one -half of the butter produced in the United States is now manufactured from farm- separated cream.

Cooperatives in the West North Central area had a volume of almost 163 million pounds, representing just under one -half of total deliveries of 330 million pounds of butterfat in cream to plants and dealers in that area in 1957.

Milk and Cream Retailed and Used by Farmers

In addition to the volume marketed through their cooperatives and through other plants and dealers, farmers also marketed a large araount of milk and cream individually. They retailed directly to consumers milk and creann amounting to a milk equivalent of 2.3 billion pounds in 1957. This amount may be added to the 98.4 billion

pounds of milk farmers marketed through plants and dealers throughout the United States in 1957 in order to obtain the total milk equivalent farmers marketed -- not including deliveries of 443,2 million pounds of butterfat in cream to plants and dealers, representing a milk equiv- alent of 11.9 billion pounds.

Farmers used another 10.3 billion pounds of milk on their farms for their own milk, cream, and butter needs. In addition, they fed more than 3 billion pounds of nnilk to calves on their farms. The combined total of milk and cream marketed and used on the farnn. represented a production on a milk equivalent basis of almost 126 billion pounds in 1957.

Although the study reported here deals with marketing dairy products through farnner cooperatives, this additional information on volume re- tailed and used by farmers gives a more complete picture of the farmer's place in producing, using, and market- ing dairy products.

Quantities of Dairy Products Manufactured

The major dairy products coopera- tives manufactured in 195 7 included creamery butter, American cheddar cheese, cottage cheese, other cheese, condensed skinn. milk, nonfat dry milk, dry buttermilk, dry whole milk, and ice cream.

Creamery Butter

Cooperatives produced a total of almost 82 5 million pounds of butter in 1957 (table 4). This represented 58 percent of the total production of slightly more than 1.4 billion pounds in the United States (figure 3).

In the West North Central area, cooperatives were particularly im- portant in manufacturing butter . Their total production of almost 512 million pounds accounted for two -thirds of the total production of butter in that area. Moreover, their production in this area accounted for a little more than three -fifths of the total amount of 825 million pounds of butter that cooperatives produced in the United States as a whole. The importance of dairy cooperatives in Minnesota and Iowa, of course, is reflected in this large volume figure for the West North Central region.

8 -

In the East North Central geo- graphic division, cooperatives had a total production of 225 million pounds of butter, representing almost 54 percent of the total amount all manufacturers produced in that area. Wisconsin accounted for almost four-fifths of the total production of cooperatives in this area.

In the Pacific area, cooperative production of 36 million pounds repre- sented a little over 58 percent of the total production of about 62 million pounds of butter by all manufacturers in the area.

The Mountain area had a total pro- duction of butter of more than 59 million pounds, with cooperatives ac - counting for 3 3 nnillion pounds -- almost 56 percent of the area's total production.

Although cooperatives in the New England area accounted for almost 68 percent of the total production of

Figure 3

Creamery Butter Manufactured, 1957

Total U. S. - 1,413 million pounds

butter in the area, their actual pro- duction was only 1.4 million pounds. Total production by all manufacturers in this area was 2.1 million pounds.

TABLE 4. --Creamery butter manufactured by cooperatives compared with the United States total, 1957'

Geographic division

Manufactured by cooperatives

Creamery butter

Total manufactured

Cooperative percent of total

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

1 ,000 pounds	1 ,000 pounds	Percent
1,432	2.123	67.5
2,461	26, 238	9.4
224, 955	419,313	53.6
511,722	766,604	66.8
4,959	12, 277	40.4
10,235	65, 260	15.7
33, 029	59. 203	55.8
36,044	61,825	58.3
824, 837	1.412.843	58.4

Cooperative data were tabulated by association headquarters and not by plant location.

- 9 -

American Cheddar Cheese

Cooperatives produced 215 mil- lion pounds of American cheddar cheese in 1957. Their production represented a little more than 23 percent of the total of 924 million pounds produced in the United States (table 5 and figure 4),

Cooperatives in the East North Central area, with a total produc- tion of more than 133 million pounds, accounted for a little over one -fourth of the total production of Annerican cheddar cheese in that area and for a little more than three -fifths of the production of all cooperatives in the United States. Cooperatives in Wis- consin accounted for more than 118 million pounds of American cheddar cheese, representing almost 89 per- cent of the total cooperatives pro- duced in the East North Central area and over 55 percent of the total all cooperatives produced in the United States.

In the West North Central area, cooperatives manufactured almost 43 million pounds of American ched- dar cheese. Their production was

Figure 4

American Cheddar Cheese Manufaeliired, 1957

Cooperotsves Total U. S. - 924 million pounds

23 percent of the total of almost 1 86 million pounds produced in the area.

In the Pacific area, cooperatives produced more than 1 9 million pounds of American cheddar cheese, or al- most 91 percent of the total pro- duction of over 21 million pounds in the area. Oregon accounted for almost 91 percent of the total of 19 million pounds cooperatives produced in this area and Washington ac- counted for the remainder of less

TABLE 5. --American cheddar cheese manufactured by cooperatives compared with the United States total, 1957-^

Geographic division

American cheddar cheese

Manufactured by cooperatives

Total manufacnired

Cooperative percent of total

New England Middle Atlantic East North Central West North Central South Atlantic South Cenaal Mountain Pacific

United States

1 ,000 bounds	1 ,000 pounds	Percent
250	6,065	4.1
5.662	24, 418	23.2
133,458	521, 749	25.6
42. 848	185,823	23.1
53	7. 221	0.7
4,162	135, 246	3.1
9,130	22, 386	40.8
19,167	21, 121	90.7

214, 730

924, 029

23.2

Cooperative data were tabulated by association headquarters and not by plant location.

10

TABLE 6. --Cottage cheese manufactured by cooperatives compared with the United States total, IQS?"*"

Geographic division

Cottage cheese (curd or creamed)

Manufactured by

cooperatives

Total manufactured

Cooperative percent of total

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

,000 i)ounds	1,000 Pounds	Percent
4,227	54, 566	7.7
10,231	216, 263	4.7
26,819	382.197	7.0
18,589	131.707	14.1
2,829	53. 947	5.2
1,190	100,366	1.2
7,832	51.144	15.3
19. 649	252. 233	7.8
91,366	1.242,423	7.4

Cooperative data were tabulated by association headquarters and not by plant location.

than 10 percent. No production of American cheddar cheese was re- ported by cooperatives in California.

Collage Cheese (Curd or Creamed)

Cooperatives produced a much smaller volume of cottage cheese than of American cheddar cheese. Although cottage cheese is classified as a manufactured product, its manu- facture and marketing are generally- associated closely with marketing fluid milk. The role of coopera- tives in the actual processing and distribution of fluid milk is much less important than in processing a number of the major manufactured dairy products.

Cooperatives produced more than 91 nnillion pounds of cottage cheese, including curd and creamed, in 1957, This represented a little over 7 percent of the total United States production of 1,2 billion pounds (table 6 and figure 5),

Cooperatives in the East North Central area produced about 27 mil-

lion pounds of cottage cheese, rep- resenting 7 percent of the total pro- duction in the area.

In the Pacific area, cooperatives produced almost 20 million pounds of cottage cheese, representing about 8 percent of the total produced in

the area.

Figure 5

leese ^

j=^

Cooperatives ■" 7%

^, <==. g

or Lreamet

- 11

Cooperatives manufactured 23 percent of the total United States production of American cheddar cheese amounting to 924 million pounds.

The West North Central area ranked next in the cooperative pro- duction of cottage cheese, with al- most 19 million pounds, represent- ing over 14 percent of the area total.

Cooperatives in the Mountain area had the highest area percentage, with more than 15 percent of the area total, but their actual production of cottage cheese was less than 8 mil- lion pounds.

Other Cheese

In addition to American cheddar cheese and cottage cheese, cooper-

atives in 1957 manufactured over 36 million pounds of other types of cheese, including primarily Swiss and small amounts of brick, munster, and limburger. Their total produc- tion of these other types of cheese represented almost 8 percent of the United States total of more than 483 million pounds (table 7).

Cooperatives in the East North Central area produced 2 8 million pounds of these other types of cheese. This represented more than three- fourths of the total production of other cheese (excluding American cheddar and cottage) by all cooper- atives in the United States in 1957,

12 -

but less than 10 percent of the pro- duction of all manufacturers in that area. Wisconsin accounted for 19

million pounds of the cooperative production in the East North Cen- tral area and the major part of this production was Swiss cheese^

Cooperatives in the Mountain area accounted for more than one -fourth of the production of these other types of cheese in that area, but their actual production was only slightly more than 6 million pounds.

lensed

than 32 million pounds in the West North Central area accounted for 35 percent of the area total. Coop- erative production in this area rep- resented almost one -third of the total production of all cooperatives in the United States. Kansas accounted for almost two -fifths and Minnesota for one -third of the cooperative produc- tion in the West North Central area.

Cooperatives in the East North Central area produced almost 23 million pounds of condensed skim milk, or about 9 percent of the area total, Indiana accounted for a little over two -thirds of the cooperative production in this area.

Cooperatives produced more than 102 million pounds of condensed skim milk (sweetened and unsweetened), representing almost 14 percent of the United States total of more than 752 million pounds (table 8),

Cooperative production of more

; Nonfat Dry Milk

Cooperatives were of major inn- portance in the manufacture of nonfat dry milk, including nonfat dry milk for animal feed. Their total produc- tion in 1957 of 1,25 billion pounds

TABLE 7. --Other cheese (excluding American cheddar and cottage) manufactured by cooperatives compared with

United States total, 1957 ^

Geographic division

Other cheese (excluding American cheddar and cottage)

Manufactured by cooperatives

Total manufactured

Cooperative percent of total

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

,00Q pounds	1 ,000 Pounds	Percent
--	7,710	--
--	86, 884	--
27,967	295, 293	9.5
454	33. 758	1.3
--	11	--
--	18, 796	--
6,035	23, 074	26.2
1,596	17,874	8.9

36,052

483, 400

7.5

Cooperative data v/ere tabulated by association headquarters and not by plant location.

13 -

TABLE 8. --Condensed skim milk manufactured by cooperatives compared with the United States total, 1957 -*-

Geographic division

Condensed skim milk (sweetened and unsweetened)

Manufactured by cooperatives

Total manufactured

Cooperative percent of total

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

1 ,000 pounds	1,000 pounds	Percent
182	16. 015	1.1
11,999	137,819	8.7
22,966	258, 389	8.9
32,411	92,543	35.0
6.887	53. 040	13.0
16,527	84, 569	19.5
621	9,089	6.8
10,864	100,989	10.8

102,457

752, 453

13.6

Cooperative data were tabulated by association headquarters and not by plant location.

amounted to almost three -fourths of the United States total production of le69 billion pounds (table 9 and figure 6).

Cooperatives in the West North Central area with a production of nonfat dry milk amounting to 545 million pounds accounted for 85 per- cent of the area total. In the East North Central area, cooperatives produced 541 million pounds of non- fat dry milk, representing a little over 80 percent of the total produc- tion in that area.

The strong position of coopera- tives in these two North Central areas is better understood when the geographic concentration of nonfat dry milk processing is recognized. The West North Central and East North Central areas combined ac- counted for almost all nonfat dry milk United States in 195 7 operatives are very both areas. Cooperatives in Wis- consin accounted for almost 86 per- cent of the cooperative production

78 percent of made in the

and dairy co- important in

Figure 6.

onfat Dry Milk Manufactured 1957

Total U. S. - 1.69 billion pounds (Includes animal feed)

- 14 -

Cooperatives hod an important role in pro- ducing nonfat dry milk.

in the East North Central area and those in Minnesota for 76 percent

of the cooperative total in the West North Central area.

In the Mountain area cooperatives, with a total production of nonfat dry milk amounting to more than 63 million pounds, accounted for all but 5 percent of the area total.

In the Pacific area the cooperative production of almost 43 million pounds of nonfat dry milk represented just a little under one -half of the total production in that area.

Dry Buttermilk

Cooperatives were relatively im- portant in the production of dry buttermilk. They produced 49 mil- lion pounds, representing almost 70 percent of the total production in the United States of 70.3 million pounds (table 10 and figure 7),

In the West North Central geo- graphic division, cooperatives pro- duced over 30 million pounds of dry buttermilk, representing 68 percent of the area total. Minnesota accounted

TABLE 9. --Nonfat dry milk manufactured by cooperatives compared with the United States total, 1957"

Geographic division

Nonfat dry milk (including animal feed)

Manufactmed by cooperatives

Total manufactured

Cooperative percent of total

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

1 ,000 pounds	1 ,000 pounds	Percent
8.286	28,441	29.1
30,932	150.023	20.6
540, 640	672,268	80.4
544, 695	643, 691	84.6
9.067	20,463	44.3
10,660	25,469	41.9
63,189	66,466	95.1
42, 853	88, 078	48.7
1,250,322	1, 694, 899	73.8

Cooperative data were tabulated by association headquarters and not by plant location.

- 15 -

TABLE 10. —Dry buttermilk manufactured by cooperatives con-	pared with the United States total, 1957-'-
Geographic division	Dry buttermilk
Manufactured by cooperatives	Total manufactured	Cooperative percent of total

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

1,000 {;ounds	1 ,000 i)ounds	Percent
1	1	100.0
79	697	11.3
17, 672	22, 499	78.5
30, 023	44,040	68.2
246	(2)	__
701	1,780	39.4
138	360	38.3
147	943	15,6
49, 007	70, 320	69.7

^ Cooperative data were tabulated by association headquarters and not by plant location. 2 Not a'vailable.

for almost 21 million pounds of the cooperative production, or 69 per- cent of the total produced by coop- eratives in this area.

In the East North Central area, cooperatives produced almost 18 million pounds of dry buttermilk in 1957, representing 79 percent of the area total of more than 22 million pounds. Wisconsin accounted for al- most three -fourths of the total pro- duction of cooperatives in this area.

The concentration of the production of dry buttermilk in the East North Central and West North Central areas is similar to that shown in the pro- duction of nonfat dry milk previously discussed in this report. These two North Central areas accounted for 66.5 million pounds out of the total United States production of 70.3 mil- lion pounds of dry buttermilk, or just a little less than 95 percent of the total production by all plants in the United States.

Figure 7

Dry Buttermilk Manufactured 1957

Total U. S. - 70.3 million pounds

16

Dry Whole Milk

Cooperatives manufactured about 1 5 million pounds of dry whole milk in 1957 (table 11). This was about 14 percent of the total United States production of 110 million pounds. The major portion of this produc- tion of dry whole milk occurred in the East North Central area. Coop- eratives in this area produced al- most 13 million pounds of dry whole milk. This represented about 16 per- cent of the area total and 85 percent of the total production of all coop- eratives in the United States. Coop- eratives in Wisconsin accounted for 90 percent of the cooperative pro- duction in the East North Central area.

Ice Cream

cheese in often being closely asso- ciated with fluid milk operations. Cooperative production amounted to about 26 million gallons, represent- ing only 4 percent of the total pro- duction of 650 million gallons in the United States in 1957 (table 12 and figure 8).

Highest percentage accounted for in any area by cooperatives was 10 percent in the Pacific area where cooperatives produced 6.9 million gallons. Production of cooperatives in the Middle Atlantic area was slightly higher with almost 7 mil- lion gallons, but this represented only a little over 4 percent of the area total.

Miscellaneous Manufactured Dairy Products

Ice cream was not an important item in the manufactured dairy prod- ucts cooperatives produced in 1957. Ice cream is somewhat like cottage

In addition to the major nn.anufac - tured dairy products already dis- cussed in detail, cooperatives manu- factured more than 400 million

TABLE 11. --Dry whole milk manufactured by cooperatives compared with the United States total, 1957

Geographic division

Dry whole milk

Manufactured by cooperatives

Total manufactured

Cooperative percent of total

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

1 ,000 pounds	1 ,000 Pounds	Percent
317	317	100.0
--	24, 359	__
2 12, 595	80, 103	15.7
2 1, 318	1,656	79.6
--	465	--
—	13	—
66	79	83.5
533	2,932	18.2

14, 829

109, 924

13.5

Cooperative data were tabulated by association headquarters and not by plant location except where stated otherwise.

^ Adjusted for plant location of two regional cooperatives.

17

TABLE 12. — Ice cream manufactured by cooperatives compared with the United States total, 1957-'-

Geographic division

Ice cream

Manufactured by cooperatives

Total manufactured

Cooperative percent of total

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

1,000 gallons	1 ,000 gallons	Percent
219	45. 063	0.5
6.954	159.094	4.4
4,466	152.409	2.9
4,587	62.524	7.3 .
1.313	77.033	1.7
449	65.585	0.7
952	20, 250	4.7
6. 885	67,915	10.1

25, 825

649, 873

4.0

Cooperative data were tabulated by association headquarters and not by plant location.

pounds of miscellaneous products as shown in table 13. These products included ice cream mix; whey, whey- powder, and whey solids; condensed

whole milk; pharmaceutical feeding products; evaporated milk; condensed buttermilk; and a number of other products that were produced in small volume.

Figure 8

Ice Cream Manufactured, 1957

Cooperatives 4%

Total U. S. - 650 million gallons

TABLE 13. --Miscellaneous dairy products manufactured by cooperatives, 1957

Miscellaneous dairy products	Quantity manufactured
	1,000
Ice cream mix	pounds 257, 470
Whey, whey powder, and whey solids Condensed whole milk	50,657 40, 042
Pharmaceutical feeding products	29, 220
Evaporated milk Condensed buttermilk	12, 019 10, 292
Anhydrous milk fat Sherbert mix	2,264 702
Ice cream mix powder	328
Ice milk	294
Yogurt	247
Milk concentrate	149
Ice milk mix	142
Sherbert	46
Unspecified	5
Total	403. 877

- 18 -

Quantities of Fluid Milk and Manufactured Dairy Products

Distributed at Wholesale and Retail

The discussions and tabulations that follow on each of the major fluid and manufactured dairy products deal with the quantities that cooperatives distributed on an adjusted basis after eliminating interassociation volume*

The fluid milk products dairy co- operatives distributed both at whole- sale and retail in 1957 included whole milk, cream, skim milk, buttermilk, and chocolate milko The major mianu- factured products they distributed at wholesale and retail included butter, American cheddar cheese, cottage cheese, other cheese (not including American cheddar or cot- tage), and ice cream. Manufactured products distributed primarily at wholesale by cooperatives included nonfat dry milk, condensed skim milk, dry buttermilk, and dry whole milk.

In eliminating intercooperative vol- ume, the adjustments were not made on an individual association basis. It should be recognized, therefore, that the simplified procedure of de- ducting total intercooperative volume received from total amount distrib- uted resulted in a slight overadjust- ment for some commodities because of amounts retained in inventory and not distributed. Therefore, the quan- tities shown in those areas and for those coraimodities where interasso- ciation volume was high may be slightly lower than the actual quan- tities distributed.

according to percentages sold at wholesale and retail.

Whole Milk

Cooperatives distributed a total of 39.3 billion pounds of whole milk in 1957 either through actual physical handling or through bargaining trans- actions (table 14 and figure 9), In other words, they performed one or more functions in the movement of this volume of 39e3 billion pounds of milk from farmer patrons to ulti- mate consumers. Sales at wholesale in bulk represented the most impor- tant outlet and accounted for 92,1 percent of the total. Cooperatives distributed 5,4 percent at wholesale in containers. The remainder of 2,5 percent was distributed at retail. Sales in containers at wholesale and retail were reported in quart equiva- lents, but were converted in table 14 to a pound basis in order to facilitate comparisons. Although retail sales represented only 2.5 percent of the total volume dis- tributed, the actual amount of whole milk sold at retail was almost 960 million pounds. The significance of sales of whole milk in bulk at whole- sale is emphasized by the fact that such sales represented 62 percent of the 58 billion pounds of milk received or bargained for by coop- eratives (table 2),

Fluid Milk Prodiiels

The major fluid milk products co- operatives distributed in 1957 are shown in tables 14 to 18, inclusive.

Cream

The total amount of cream distrib- uted by cooperatives, on a butter- fat basis, was almost 141 million

19 -

TABLE 14. --Whole milk distributed by cooperatives, by geographic areas, igsv^*"

		Wholesale
					Retail	I	Total
Geographic division	Bulk		In containers
	1,000	Percent	1,000	Percent	1,000	Percent	1,000	Percent
	pounds		pounds		pounds		pounds
New England	2,115,867	89.6	190, 529	8,1	53. 632	2,3	2,360,028 100
Middle Atlantic	9, 044, 501	93.4	509, 157	5.2	135, 198	1.4	9.888,856 100
East North Central	11, 889, 922	95.4	379, 047	3.0	194, 936	1.6	12,463,905 100
West North Central	4, 137, 335	91.9	259, 073	5.7	107, 825	2.4	4,504,233 100
South Atlantic	2. 632, 359	84.0	184, 906	5.9	317, 088	10.1	3,134,353 100
South Central	3, 192, 505	97.8	54, 909	1.7	18, 529	0,5	3,265,943 100
Mountain	890, 947	86.1	114, 025	11.0	29, 683	2.9	1,034,655 100
Pacific	2, 309, 321	80.9 92.1	441, 361	15.5 5.4	103,099	3.6 2.5	2, 853, 78]	. 100 t 100
United States	36, 212, 757	2, 133. 007	959, 990	39, 305, 75^

■"" Adjusted for interassociation transactions. Includes purchases from other sources. Volume covered by bargaining transactions is included.

Figure 9

Whole Milk Distributed by Cooperatives, by Geographic Divisions, 1957

(Billions of pounds)

BJi I k physically Bicrke t ed through ba r ga in i n

20 -

pounds.^ (table 15), Less than 2 per- cents on a butterfat basis, was dis- tributed at retalL Slightly over one- fifth was distributed at wholesale in containerse The remainder of over 78 percent was distributed at whole- sale in bulk.

In the South Atlantic and Mountain areas, the percentages distributed at retail were higher than for other areas. In the Mountain area over one -half of the cream was distrib- uted at wholesale in containers, while in the Middle Atlantic area over two- fifths and in the East North Central area almost one -third of the cream that cooperatives marketed was dis- tributed at wholesale in containers^

Fluid Skim Milk

milk in 1957 (table 16 and figure 10)» Less than 1 percent of this total was distributed at retail. The percent- ages sold at retail were relatively- high for the South Atlantic and Mountain areas* Skim milk sold at wholesale in containers also repre- sented high percentages in each of these two areas^

Bulk sales at wholesale repre- sented 97 percent or more of the total sales of skiin milk for the New Englandj East North Central^ West North Central^ and South Cen- tral areas. Bulk sales at wholesale represented 85 percent or more of the total skim milk sales of coop- eratives in both the Middle Atlantic and Pacific areas.

Cooperatives distributed a total of almost 3,8 billion pounds of skim

® Cooperatives reported their packaged wholesale and retail sales of cream in quart equivalents. These were converted into pounds of butterfat on the basis of esti- mated butterfat content.

Buttermilk

The total quantity of buttermilk that cooperatives distributed at wholesale and retail amounted to almost 90„7 million quart equivalents

TABLE 15. -"Cream distributed by cooperatives, by geographic divisions, 1957-

	Wholesale		1		.
					Retail	Total
	Bulk		In containers
Geographic division
	Butterfat		Butterfat		Butterfat		Butterfat
	1,000	Percent	1,000	Percent	1,000	Percent	1,000	Percent
	pounds		pounds		pounds		pounds
New England	6,727	76.3	1,992	22.6	101	1.1	8,820	100
Middle Atlantic	9,184	55.0	7,129	42.7	374	2.3	16, 687	100
East North Central	26, 906	65,2	13, 478	32.7	880	2.1	41, 264	100
West North Central	39, 214	96.4	1,099	2.7	350	0.9	40, 663	100
South Atlantic	4,279	77.7	921	16.7	306	5.6	5,506	100
South Central	14, 043	99.0	115	0.8	31	0.2	14, 189	100
Mountain	711	42.2	886	52.5	89	5.3	1,686	100
Pacific	8,850	74.0 78.1	2,714	22.7 20.1	390 2,521	3.3 1.8	11, 954	100
United States	109, 914	28, 334	140, 769	100

-'- Adjusted for interassociation transactions. Includes purchases from other sources.

21

TABLE 16. --Fluid skim milk distributed by cooperatives, by geographic areas, 1957

	Wholesale
Geographic division	BuLk	In containers	Retail	iotal
1,000 pounds	Percent	1,000 pounds	Percent	1,000 pounds	Percent	1,000 pounds	Percent

New England	70,312	97.7	475	0.7	1,146	1.6	71,933	100
Middle Atlantic	158,681	84.9	21, 569	11.6	6,560	3.5	186, 810	100
East North Central	770, 278	97.3	12, 016	1.5	9,095	1.2	791,389	100
West North Central	2,496,757	99.0	21, 893	0.9	1.262	0.1	2, 519, 912	100
South Atlantic	439	5.1	3,664	42.5	4,515	52.4	8,618	100
South Central	21,437	96.9	393	1.8	286	1.3	22, 116	100
Mountain	6,596	40.6	6,936	42.7	2,711	16.7	16,243	100
Pacific	125, 060	86.0	15, 901	10.9 2.2	4,515	3.1	145, 476	100
United States	3,649,560	97.0	82,847	30, 090	0.8	3, 762, 497	100

Figure 10

Fluid Skim Milk Distributed by Cooperatives, by Geographic Divisions, 1957

(Millions of pounds)

- 22

(table 17 and figure 11). A little more than 9.1 million quart equiva- lentSj representing 10 percent of the total, were distributed at retail. In the New England, South Atlantic j and South Central areas, the percentage distributed at retail represented one-fifth or more of the total that cooperatives distributed in each area.

Chocolate Milk

Cooperatives distributed just about one -half as much chocolate milk as they did buttermilk in 1957, Their total volume was almost 45,5 mil- lion quart equivalents (table 18), A little over 7 million quart equiva- lents, representing about 16 per- cent of the total, were distributed at retail. More than one -fourth was distributed at retail in the Pacific area. One -fifth or more was dis- tributed at retail in the New England, East North Central and South Atlantic areas.

The Middle Atlantic and East North

Central areas combined accounted for more than three -fifths of the total chocolate milk distributed by- cooperatives in 1957,

Manufactured Products

The major manufactured products dairy cooperatives distributed at wholesale and retail in 1957 are shown in tables 19 to 23, inclusive,

according to the percentages sold at each distribution level. The manu- factured products sold primarily at wholesale were nonfat dry milk (table 24), condensed skim milk, dry buttermilk, and dry whole milk (table 25).

Creamery butter

The total volume of butter coop- eratives distributed at wholesale and retail amounted to almost 816 million pounds (table 19 and figure 12). Co- operatives distributed 58,7 million pounds, or just a little over 7 percent of this volume, at retail.

TABLE 17. --Buttermilk distributed by cooperatives, by geographic divisions, 1957

	Wholesale	Retail	Total
Geographic division	1, 000 quart equivalent	Percent	1, 000 quart equivalent	Percent	1, 000 quart equivalent	Percent

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

245	80.1	61	19.9	306	100
4.109	87.0	616	13.0	4,725	100
19, 920	92.4	1,636	7.6	21, 556	100
36, 847	93.5	2,565	6.5	39. 412	100
9,235	77.7	2,649	22.3	11, 884	100
1,889	79.9	475	20.1	2,364	100
2,234	88.3	296	11.7	2,530	100
7,059	89.5	830	10.5	7,889	100

81, 538

89.9

9,128

10.1

90, 666

100

23

Figure 11

Buttermilk Distributed by Cooperatives, Geographic Divisions, 1957

The East North Central and West North Central areas combined ac- counted for more than 88 percent of

the total amount cooperatives dis- tributed, with almost 7 percent of the combined total distributed at retail.

TABLE 18. --Chocolate milk distributed by cooperatives, by geographic divisions, 1957

Geographic division

Wholesale

1, 000 quart equivalent

Percent

Retail

1, 000 quart equivalent

Percent

Total

1, 000 quart equivalent

Percent

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

955	78.7	258	21.3	1,213	100
14, 403	96.2	568	3.8	14, 971	100
10, 647	76.4	3,291	23.6	13, 938	100
2,314	91.0	230	9.0	2,544	100
4,737	79.1	1,255	20.9	5,992	100
1,201	84.6	219	15.4	1,420	100
1,513	85.7	252	14.3	1,765	100
2,568	71.2	1,041	28.8	3,609	100

38, 338

84.3

7, 114

15.7

45, 452

100

24

TABLE 19. --Creamery	butter distributed by cooperatives, by geographic dj	visions, 1957^
	Wholesale	Retail	Total
Geographic division	1,000 pounds	Percent	1,000 pounds	Percent	1,000 pounds	Percent

New England Middle Atlantic East North Central West Nortli Central South Atlantic Soutli Central Mountain Pacific

United States

1,907	91.3	181	8.7	2,088	100
2,452	65.1	1,312	34.9	3,764	100
206, 785	93.7	13, 980	6.3	220, 765	100
465, 757	92.7	36, 496	7.3	502, 253	100
2,489	53.7	2,148	46.3	4,637	100
9,217	89,9	1,040	10.1	10,257	100
31, 418	95.8	1,385	4.2	32, 803	100
36, 979	94.5	2,134	5.5	39. 113	100

757, 004

92.8

58, 676

7,2

815,680

100

"'" Adjusted for interassociation transactions. Includes purchases from other sources.

Figure 12

Creamery Butter Distributed by Cooperatives, by Geographic Divisions, 1957

(Millions of pounds)

25

More than 46 percent of the total of 4.6 million pounds of butter dis- tributed in the South Atlantic area was marketed at retail. In the Middle Atlantic area, cooperatives marketed at retail 35 percent of their total sales of 3.8 million pounds.

American Cheddar Cheese

Cooperatives distributed a total of almost 216 million pounds of American cheddar cheese in 1957 (table 20 and figure 13). Only 1.7 percent of this amount was marketed at retail.

While the New England area showed the high proportion of 63 percent marketed at retail, the total amount distributed by cooperatives in this area was only 216,000 pounds, rep- resenting about one -tenth of 1 per- cent of the total American cheddar cheese distributed by all cooper- atives in the United States.

Cooperative laboratory where products are tested for high quality.

Cottage Cheese (Curd or Creamed)

Cooperatives distributed more than 96 million pounds of cottage cheese

TABLE 20. --American cheddar cheese distributed by cooperatives, by geographic divisions, 1957 ■'■

	Wholesale	Retail	Total
Geographic division	1,000 pounds	Percent	1,000 pounds	Percent	1,000 pounds	Percent

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

80	37.0	136	63.0	216	100
5,655	98.8	70	1.2	5,725	100
132, 911	98.6	1,900	1.4	134, 811	100
37, 454	98.3	664	1.7	38, 118	100
53	100.0	—	—	53	100
4,209	100.0	(2)	(2)	4,209	100
7,680	94.2	469	5.8	8,149	100
24, 141	98.2	446	1.8	24,587	100

212, 183

B. 3

3,685

1.7

215, 868

100

■'- Adjusted for Interassociation transactions. Includes purchases from other sources.

Less than 500 pounds.

- 26

Figure 13

American Cheddar Cheese Distributed by Cooperatives, by Geographic Divisions, 1957

(curd or creamed) in 1957 (table 21 and figure 14)e Almost 12 percent of this volume was marketed at retail.

Cooperatives in the Middle Atlantic area sold at retail two -fifths of the 11 million pounds they distributed in 1957, In the South Atlantic area about 22 percent of the total was distributed at retail, and in the South Central area 17 percent of the cot- tage cheese marketed by coopera- tives was sold at retaiL

In the East North Central area, which accounted for almost 30 per- cent of the total distributed by coop- eratives, a little over 10 percent was sold at retail.

Other Cheese

Cooperatives distributed over 38 million pounds of other cheese, ex- clusive of American cheddar and cottage cheese, in 1957 (table 22). Almost 70 percent of this other cheese was distributed in the East North Central area, A large part of this volume was Swiss cheese. Less im- portant in volume were brick, muns- ter, and limburger. Cooperatives made less than 3 percent of these sales of other cheese at retail.

Ice Cream

Cooperatives were less important in distributing ice cream than in

- 27 -

TABLE 21. --Cottage cheese (curd or creamed) distributed by cooperatives, by geographic divisions, 1957-

	Wholesale	Retail	Total
Geographic division	1,000 poimds	Percent	1,000 pounds	Percent	1, 000 pounds	Percent

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

4,131	97.1	123	2.9	4,254	100
6,651	60.0	4,436	40.0	11, 087	100
26, 709	89.7	3,065	10.3	29, 774	100
17,175	99.2	135	0.8	17,310	100
4,761	78.4	1,314	21.6	6,075	100
1,017	83.0	209	17.0	1,226	100
6,305	91.1	615	8.9	6,920	100
18,149	92.7	1,420	7.3	19,569	100

United States

84, 898

11,317

11.8

96,215

100

Adjusted for interassociation transactions. Includes purchases from other sources.

Figure 14

Cottage Cheese (curd or creamed) Distributed by Cooperatives by Geographic Divisions, 1957

(Millions of pounds)

28

TABLE 22. --Other cheese (excluding American cheddar and cottage) distributed by cooperatives, by geographic

divisions, 1957

	Wholesale	Retail	Total
Geographic division	1,000 pounds	Percent r	1,000 pounds	Percent	1,000 pounds	Percent

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

36, 954

97.1

50

100. 0

1,123

2.9

50

38,077

100

25,539	97.0	787	3.0	26, 326	100
3,091	96.7	106	3.3	3,197	100
5,978	97.6 •	147	2.4	6,125	100
2,346	98.6	33	1.4	2,379	100

100

Adjusted for interassociation sales. Includes purchases from other sources.

marketing other manufactured dairy products. Their total sales amounted to about 31.2 million gallons in 1957 (table 23). Of this amount, only 1 percent was distributed at retail. Almost two -fifths of their total sales of ice cream occurred in the Pacific area, where sales amounted to close to 12 million gallons. Next highest was the Middle Atlantic area where

cooperative sales were over 7 mil- lion gallons, all at wholesale.

Nonfat Dry Milk

Cooperatives were innportant in the distribution of nonfat dry milk at wholesale, marketing over 1,2 billion pounds in 1957 (table 24).

TABLE 23. --Ice cream distributed by cooperatives, by geographic divisions, 1957

	Wholesale	Retail	Total
Geographic division	1, 000 gallons	Percent	1,000 gallons	Percent	1, 000 gallons	Percent

New England Middle Atlantic East North Central West North Cenual South Atlantic South Central Mountain Pacific

United States

210	96.8	7	3.2	217	100
7,003	100.0	--	--	7,003	100
5,822	99.0	56	1.0	5,878	100
2,785	92.2	237	7.8	3,022	100
1, 761	100.0	--	--	1,761	100
449	100.0	--	--	449	100
899	99.9	1	0.1	900	100
11,953	99.9	8	0.1	11,961	100

30, 882

99.0

309

1.0

31,191

100

Adjusted for interassociation transactions. Includes purchases from other sources.

29 -

The East North Central and West North Central areas combined ac- counted for more than 85 percent of the total sales cooperatives made at wholesale in 1957.

Condensed Skim Milk

Cooperatives distributed 85 mil- lion pounds of condensed skim milk at wholesale in 1957 (table 25). The West North Central area accounted for one -fourth, the East North Cen- tral area for one -third, and the South Central area for about one -fifth of the total.

TABLE 24. --Nonfat dry milk distributed by cooperatives, by geographic divisions 1957

Geographic division

New England Middle Atlantic East North Central West North Central South Atlantic South Central Mountain Pacific

United States

Distributed at wholesale^

1,000 pounds
12,	276
29.	984
525,	809
521,	943
8,	575
. 10,	631
61.	225
43.	334
1.213,	777

Adjusted for interassociation transactions. Includes purchases from other sources.

Dry Buttermilk

Cooperatives distributed at whole- sale nearly 42.3 million pounds of dry buttermilk in 1957 (table 25). The East North Central and West North Central areas combined ac- counted for all but a little over 2 percent of the total.

Dry Whole Milk

The dry whole milk cooperatives distributed at wholesale in 1957 amounted to about 1 3.7 million pounds (table 25). Almost 90 percent of the total was distributed in the East North Central area.

TABLE 25. --Other manufactured dairy products distributed at wholesale by cooperatives, by geographic

divisions. 1957

Geographic division

Distributed at wholesale"''

Condensed skim milk 2

Dry whole milk

New England Middle Atlantic East North Cenual West North Central South Atlantic South Cenual Mountain Pacific

United States

1 ,000 pounds	1 ,000 pounds	1,000	pounds
7.750	44		--
28.300	14, 973	^12.	322
21.537	26, 148	3	914
3.585	--		--
15.617	701		—
621	321		66
7,555	98		395

84, 965

42, 285

13,697

Adjusted for interassociation transactions. Includes purchases from other sources.

Includes sweetened and unsweetened.

Adjusted for plant location of two regional cooperatives.

- 30

Types and Combinations of Dairy Products Handled at Eaeh Level of Operation

To obtain a better understanding of the extent of integration and di- versification in the operations of dairy cooperatives, the data were summarized to show the types of dairy products cooperatives handled at each of the four major levels of opera- tion: (1) Receiving and (2) nnanufacturing, (3) at wholesale, and (4) at retail.

bargaining, distributing

distributing

Meeeiving and Bargaining

The dairy products cooperatives received and bargained for appear in table 26 according to the number and percent of associations that re- ported each product or combination of products.

In the combinations of dairy prod- ucts shown in table 26, those prod- ucts manufactured by other coopera- tives or other firms and purchased by the reporting associations are included as a part of the receiving operation.

Associations receiving or bargain- ing for only whole milk, creana, skim milk, or combinations of these fluid products^ represented more than four-fifths of the 1,557 dairy coop- eratives included in the study, with only one -fifth reporting receipts of manufactured dairy products.

A total of 1,180 associations, or

a little over three -fourths of the 1,557 cooperatives included in the study, manufactured dairy products in 1957, Table 27 indicates that al- nnost one-half of these 1,180 asso- ciations manufactured butter only. Fifteen percent of these associa- tions manufactured only in 1957, Thus^ of butter only or only constituted the manufacturing operations of almost 65 percent of the 1,180 associations that manu- factured dairy products in 1957.

Cheddar cheese the production Cheddar cheese

TABLE 26. --Number of dairy cooperatives receiving or bargaining for dairy products specified, 1957

Dairy products

Associations receiving or bargaining
for dairy products specified
Number	Percent
684 43. 9
372 23.9
136 8.7
106 6.8
88 5.7
61 3.9
61 3.9
49 3.2

Whole milk only Whole milk and cream Cream only

Whole milk, cream, and manufactured products Whole milk and manufactured products Whole milk, cream, and skim milk Whole milk, cream, skim milk, and manufactured products All other combinations

Total

1,557

100.0

- 31

The manufacture of butter or cheese, or of both butter and cheese, was also included in the operations of a number of other dairy coopera- tives. For example, table 2 7 shows that 44 associations manufactured butter and nonfat dry milk; 22 asso- ciations manufactured butter and dry buttermilk; 22 associations manu- factured all three of these products; 26 associations manufactured cheddar cheese and butter; and 35 associa- tions manufactured butter and ice cream.

On the whole, the manufacture of Cheddar cheese appeared to be a specialized operation as only 1 5 asso - ciations reported nnanufacturing other types of cheese (not including cottage cheese) along with the manufacture of Cheddar cheese.

In the manufacture of cheddar cheese and butter, it is interesting

to note that 26 associations reported manufacturing these two products only (table 27). In addition, 34 other asso- ciations nnanufactured butter and cheddar cheese along with other com- binations of products. Thus, only 60 associations appeared to be utilizing the extra butterfat in their own plants by using standardized cheese milk and whey creann in butter manufac- ture.

Out of the 888 cooperatives that manufactured butter, only 97 also reported production of dry butter- milk. This indicates that only about 11 percent of these butter -making associations utilized the buttermilk in their own plants in the manu- facture of dry buttermilk.

In addition to the 35 associations already mentioned that manufactured both butter and ice cream, 95 other associations whose operations were

TABLE 27. --Number of cooperatives manufacturing dairy products in 1957

Dairy products manufactured

Cooperatives manufacturing dairy products specified

Number

Percent

Butter only

Cheddar cheese only

Nonfau dry milk only

Other cheese 1 only

Butter and nonfat dry milk

Butter and dry buttermilk

Butter, dry buttermilk, and nonfat dry milk

Cheddar cheese and butter

Butter and ice cream

Other combinations of 3 or less products

Combinations of 4 products

Combinations of 5 products

Combinations of 6 products

Combinations of 7 products

Combinations of 8 products

Total

589

174 8 50 44 22 22

.26 35

116

47

26

12

5

4

2 1,180

49.9 14.8 0.7 4.2 3.7 1.9 1.9 2.2 3.0 9.8 4.0 2.2 1.0 0.4 0.3

100.0

^ Not including cheddar and cottage cheese.

2 A total of 377 dairy cooperatives reported no manufacturing of dairy products in 1957.

32 -

included in the unspecified commodity combinations in table 27 reported manufacturing ice cream, making a total of 130 associations, or a little over 11 percent of the 1,180 asso- ciations that manufactured dairy- products.

Distributing at Wholesale

The number of dairy associations that distributed each of the major fluid and manufactured dairy prod- ucts at wholesale appear in table 28. These associations include bar- gaining cooperatives. The table re- flects the importance of all associa- tions concerned with the wholesale distribution of milk and cream, in- cluding both the volume cooperatives physically handled as well as that volume sold to bottling concerns and other wholesale buyers by negotia- tion which cooperatives did not physi- cally handle.

Table 28 indicates that 47 per- cent of the 1,557 associations in the study sold milk at wholesale (including milk sold through bar- gaining transactions) in 1957. More than 57 percent of all associations sold creamery butter at wholesale in 1957.

A total of 455 associations, or more than 29 percent of the total, distributed packaged fluid products at wholesale in 1957. These pack-

Dairy bargaining associations derive all or a major portion of their business volume from negotiation of price and other terms of sale for milk sold in bulk form to distributors. Dairy bargaining associations at one time generally performed only price negotiation functions. Many now perform additional functions such as physically handling a portion of the milk and making spot sales. Bargaining associations, like other dairy marketing cooperatives, represent their members at Federal or State milk order hearings.

aged fluid products included either one or a combination of the follow- ing: Whole milk, cream, skim milk, buttermilk, and chocolate milk.

About 28 percent of these associa- tions distributed cream in bulk form (including a very small volume covered by bargaining transactions) at wholesale in 1957.

Twenty -three percent of all asso- ciations distributed bulk skim milk at wholesale in 1957. Eighteen per- cent of the associations distributed Cheddar cheese at wholesale.

Distributing at Retail

A total of 811 associations, or 52 percent of the total number, re- ported sales of dairy products at retail in 1957. Table 29 indicates that 712, or almost 46 percent, of

TABLE 28. --Number of dairy cooperatives that distributed specified dairy products ai wholesale, 1957

Dairy products

Cooperatives that distributed at wholesale dairy products specified

Number

Percent-

Creamery butter	891	57.2
Whole milk (bulk)	735	47.2
Packaged fluid products	455	29.2
Cream (bulk)	431	27.7
Skim milk (bulk)	354	22.7
American cheddar cheese	277	17.8
Nonfat dry milk	198 -	12.7
Cottage cheese	135	8.7
Other cheese2	82	5.3
Other products-^	261	16.8

"*" Total exceeds 100 percent because many cooper- atives distributed at wholesale more than one dairy product.

2 Excluding cheddar and cottage cheese.

^ Includes dry buttermilk, dry whole milk, con- densed skim milk, ice cream, and unspecified.

33 -

TABLE 29. --Number of dairy cooperatives that disuibuted specified dairy products at retail, 1957

	Cooperatives that
	distributee	at retail
Dairy products	dairy products specified
	Number	Percent i
Butter	712	45.8
Whole milk	197	12.7
Cream	168	10.8
American cheddar cheese	158	10.2
Buttermilk	118	7.6
Fluid skim milk	97	6.4
Cottage cheese	95	6.1
Chocolate milk	80	5.1
Ice cream	49	3.1
Other cheese (exclusive of
cheddar and cottage)	39	2.5

Total exceeds 100 percent because many cooper- atives distributed at retail more than one dairy product.

all associations in the study, sold butter at retail. A total of 197 asso- ciations, or about 13 percent of the total, sold whole milk at retail; 168 associations, or 11 percent, sold cream; and 158 associations, or 10 percent, sold American cheddar cheese at retail. All other dairy- products sold at retail were reported

by less than 10 percent of the asso- ciations in the survey.

It should be pointed out, however, that because data were developed from operating statements furnished in the annual survey for those asso- ciations not included in the sample or included but failing to furnish a dairy questionnaire, the retail data may tend to be understated slightly and the wholesale data correspond- ingly overstated. This results from the classification of sales of dairy products as distributed at wholesale unless operating statements or other available data showed definitely the amount of sales made at retail. Thus, there may be included in the whole- sale volume a small number of sales that were actually made at retail but were not specifically shown as retail sales in the operating state- ments received in the annual survey of farmer cooperatives.

Also, it is important to keep in mind that some of these associations reporting sales of butter and other dairy products at retail made such sales in small quantities and that many associations made such retail sales primarily as a service to their patrons.

Cooperatives Manufacturing Dairy Products by Production-Size Groups

The number of cooperatives that manufactured the major dairy prod- ucts in 1957 are shown by production- size groups in table 30. The location of these associations is shown by States and geographic divisions in table 1.

A total of 183 associations, or slightly more than one -fifth of the

888 associations that manufactured creamery butter, produced between 250,000 and 500,000 pounds of butter each in 1957. Another 139 associa- tions, or almost 16 percent of the cooperatives that made butter, pro- duced between 500,000 and 750,000 pounds each. Five associations each produced more than 1 0 million pounds of butter in 1957.

- 34 -

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Cooperatives produced over 91 million pounds of cottage cheese, or 7 percent of the 1.2 billion pounds produced in the United States.

Of the 24 8 associations that manu- factured American cheddar cheese in 1957, 57 produced between 250,000 and 500,000 pounds each. Another 57 associations each produced be- tween 500,000 and 750,000 pounds of Arnerican cheddar cheese in 1957. These two groups accounted for 46 percent- of the total number of asso- ciations that manufactured American cheddar cheese. Two associations produced more than 1 0 million pounds each of American cheddar cheese in 1957.

Slightly under one -fifth of the 108 cooperatives that produced cottage cheese (curd or creamed) were in the group that produced less than 50,000 pounds each. Three associa-

tions each produced more than 5 million pounds, but no association produced 10 million pounds or more of cottage cheese in 1957.

Alnaost one -third of the 75 coopera- tives that manufactured other types of cheese, exclusive of cheddar and cottage, produced between 250,000 and 500,000 pounds each in 1957. The highest production of other cheese reported was between 3 and 3.5 mil- lion pounds by one association.

Of the 38 associations that reported manufacturing condensed skim milk in 1957, 3 produced between 10 and 15 million pounds each; 1 associa- tion produced between 7.5 and 10 million pounds, and 2 associations

36 -

produced between 5 and 7.5 nnillion pounds each.

Only 20 associations reported manufacturing dry whole milk in 1957 and none of these produced over 3 million pounds.

Of all products manufactured by dairy cooperatives, nonfat dry milk was the one produced in largest volume by individual associations. Table 30 shows that 10 of the 191 associations that manufactured this product produced over 20 million pounds each in 1957; 4 produced be- tween 15 and 20 million pounds each; and 10 produced between 10 and 15 million pounds each. Less than one- fifth of the associations that manu- factured nonfat dry milk in 1957 produced under 1 million pounds each.

About 19 percent of the 107 asso- ciations that manufactured dry butter- milk produced less than 50,000 pounds each in 1957. Two associations pro- duced between 7.5 and 10 nnillion pounds each of dry butterrailk in 1957.

Cooperative production of the ma- jor dairy products shown in table 30 was measured on the basis of pounds manufactured. Not included in this table is cooperative produc- tion of ice cream which was meas- ured on the basis of gallons manu- factured in 1957. A total of 130 associations reported manufacturing ice cream in 1957. Of this number, 72 associations, representing more than 55 percent of all cooperatives that manufactured ice cream, pro- duced less than 50,000 gallons each. Another 23 associations, or almost 18 percent, manufactured between 50,000 and 100,000 gallons of ice cream in 1957. The highest produc - tion- -reported by only one associa- tion--was between 3.5 and 4 million gallons. Two other associations manufactured between 2.5 and 3 mil- lion gallons of ice cream each in 1957.

Transportation

Cooperatives were requested to supply information on the percentages of dairy products transported at dif- ferent levels of operation in trucks they owned and leased. Separate data were requested for the percentages transported in such trucks from farm to receiving plant, between plants each association owned, to the whole- sale trade, and to the retail trade.

It is expected that the study re- ported here on the extent of integra- tion in the business activities of dairy cooperatives will be conducted on a rotated basis with other cora-

modity groups possibly every 5 years. Therefore, the information developed in - this study on use of owned and leased trucks is intended to provide a benchmark for nneasuring only limited trends in transportation fa- cilities used by dairy cooperatives.

Table 31 shows the number of co- operatives that supplied information on the percentages of dairy products hauled in owned or leased trucks from farm to plant, between owned plants, and to the wholesale and retail trade. The transportation ques- tions did not apply to a number of

37 -

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associations replying, as shown in this table. For example, 835 asso- ciations that replied to the trans- portation questions gave no percent- ages on interplant hauling and it was assumed that they operated only one plant in 1957. A total of 414 asso- ciations that replied to the trans- portation questions indicated they did not sell to the retail trade in 1957.

Of the 686 associations that sup- plied information on percentages of milk and butterfat transported be- tween farms and receiving plants, more than two -fifths hauled none in trucks they owned or leased. These associations relied on contract haulers and others for farm-to-plant hauling. On the other hand, over 14 percent reported hauling all of their milk and butterfat from farms to receiving plants in trucks they owned or leased and another 7 percent hauled between 90 and 100 percent from farms to receiving plants in their own or leased trucks.

Of the 167 associations that re- ported on transportation between their own plants, more than one -ha If moved all milk and milk products between

these plants in trucks they owned or leased. More than 36 percent of these 167 associations did no hauling of dairy products between their own plants in trucks they owned or leased.

More than 46 percent of the 469 cooperatives that supplied informa- tion on transporting dairy products to the wholesale trade reported that they hauled no milk or manufactured dairy products to the wholesale trade in trucks they owned or leased. Thus, they depended on contract haulers and others for such transportation. Over 29 percent of these 469 asso- ciations, however, transported all dairy products they sold to the whole- sale trade in trucks they owned or leased.

Of the 286 associations that re- ported on transportation to the retail trade, one -fourth transported none of the dairy products sold to the retail trade in trucks they owned or leased. More than one -half of these 286 associations, however, transported all dairy products they sold to the retail trade in trucks they owned or leased.

- 39 -

other Publications Available

The Story of Farmers* Cooperatives, Educational Circular 1.

Organizing a Farmer Cooperative, FCS Circular 18,

Multiquart Containers -- Their Significance in Dairy Cooperatives, General Report 54, William J. Monroe,

Grade A Milk Marketing by Manufacturing Co-ops, General Report 56. Donald R. Davidson,

Seasonal Milk Pricing Plans, Bulletin 12, Stanley F. Krause.

Dairy Cooperatives Help Find Markets, FCS Bulletin 1, Reprint 2. Donald E, Hirsch,

Comparing Bulk and Can Milk Hauling Costs, FCS Circular 14, Joseph M, Cowden,

Biilk Milk Handling in 1955, General Report 22, Joseph M, Cowden,

Pricing Milk According to Use, FCS Bulletin 6. Stanley F, Krause.

Meeting Seasonal Problenns of Dairy Cooperatives through Education, FCS Bulletin 9. Stanley F. Krause,

Selling Milk , , , Ideas for Cooperative Managements, FCS General Report 20. Donald E. Hirsch.

A copy of each of these publications may be obtained upon request while a supply is available from --

Information Division

FARMER COOPERATIVE SERVICE Uo S. DEPARTMENT OF AGRICULTURE . .WASHINGTON 25, D, C.